I wouldn't touch Cranky with a 10-foot pole in a case like this, though. He'd probably just cackle at these two poor animals and say, "Pah! Back in my day, video game characters were all the same size!"
(As for the papery effect, I created a top white layer, cut out a "window" for the background to show through, and then drew over the edge of said window with a white grunge brush for the scraggly look. Then under layer style I gave the layer a drop-shadow effect, and applied a papery texture to the layer.)
Aha! Nice little 'what if' depiction... it's a wonder Kazooie can support the great lug at all when talon trotting (let alone flying!). It's no surprise Banjo would squash his fiery, feathered friend if Kazooie had to wear the backpack like this. ;-p